A retailer decides to reduce the price of a sport coat that normally costs $98. The reduction in price is $3. The storeowner believes that the reduction will catch the eye of the value shopper. If the sport coat does not sell, the retailer might wish to consider which of the following before making another price change?
A) subliminal perception
B) the figure-ground principle
C) the golden triangle
D) Weber's law

Question

Quizplus · Accepted Answer

Weber's law states that the noticeable difference between two stimuli is proportional to the magnitude of the stimuli. In this case, the reduction in price was only $3 out of a price of $98 which may not be perceived as a significant enough difference to attract customers. Therefore, before making another price change, the retailer should consider a bigger reduction in price that would satisfy Weber's law and be more noticeable to customers.

A Retailer Decides to Reduce the Price of a Sport